On Wednesday, EU ambassadors reached a near-final agreement on a substantial €90 billion loan intended to bolster Ukraine's defense capabilities against ongoing Russian aggression. This agreement was made after a series of challenging negotiations, with the main focus being the participation of third countries in arms procurement under the loan's terms. The draft deal outlines specific conditions whereby Ukraine can acquire arms from non-EU nations, like the U.S. and the U.K., particularly when EU options are unavailable or critical needs arise. It includes provisions for air and missile defense systems as well as fighter aircraft ammunition. The meeting followed pressure from various national capitals and was crucial for ensuring Ukraine's financial stability as it faces an urgent cash shortage anticipated by April. In the current context, Ukraine's financial needs are projected to be significantly higher than this loan amount, with estimates citing a requirement of at least €135 billion for sustaining military and budgetary operations. The loan itself is structured to serve immediate funding needs, with one-third earmarked for regular budgetary expenses while the remainder is allocated for defense purposes. France played a pivotal role in coordinating the terms of the loan agreement, advocating measures that would ensure EU defense contractors benefit from Ukraine’s military procurements. To achieve this, the draft includes provisions that control the procurement process tightly, focusing on balancing rights between EU member states and third countries. This financial aid is critical for Ukraine, especially as it participates in ongoing peace negotiations with Russia backed by the United States, and without this assistance, the country risked running out of funds essential for its war effort. The loan is expected to be raised through the EU’s seven-year budget, and the Commission is exploring the possibility of utilizing unused budgetary allocations to mitigate the borrowing costs associated with the loan. Discussions are ongoing about the conditions Ukraine must satisfy to access the funds, including specifics about who benefits from the military procurement deals. This upcoming financing will initially allow for €45 billion to be disbursed within the year, with additional funds planned to arrive by 2027. The terms stipulate that Ukraine would only need to repay the loan if Russia were to conclude its invasion and pay war reparations. In the unfortunate event of noncompliance from Moscow, the EU is considering options for accessing frozen Russian assets within its jurisdiction as an alternative means of coverage for the debts incurred.